NOTE 1 – GENERAL

A. Description of business:

Microbot Medical Inc. (the “Company”) is a medical device company specializing in the research, design and development of next generation robotic endoluminal surgery devices targeting the minimally invasive surgery space. The Company is primarily focused on leveraging its robotic technologies with the goal of redefining surgical robotics while improving surgical outcomes for patients.

Using the Company’s LIBERTY^® technological platform, the Company has developed the first-ever fully disposable robot for various endovascular interventional procedures. The LIBERTY^® Endovascular Robotic Surgical System is designed to maneuver guidewires and over-the-wire devices (such as microcatheters) within the body’s vasculature. It is intended for the remote delivery and manipulation of guidewires and catheters, and remote manipulation of guide catheters to facilitate navigation to anatomical targets, with the current intention to focus on the peripheral vasculature market. It is designed to eliminate the need for extensive capital equipment requiring dedicated Cath-lab rooms as well as dedicated staff.

The Company and its subsidiary are sometimes collectively referred to as the “Company” as the context may require.

B. Risk Factors:

Through December 31, 2025, the Company has not recognized any revenues, and cannot make any assurances of generating significant revenues in the future.

As of December 31, 2025, the Company had cash equivalents and marketable securities balance of approximately $78,592, excluding restricted cash. The Company expects to incur significant losses for the foreseeable future as it conducts marketing activities for its current product and continues its research and development of any other future product candidates and all other work necessary to obtain regulatory clearances or approvals for its products or product candidates. Notwithstanding these conditions, the Company’s management has concluded that the available funds as of the balance sheet date are sufficient to fund the Company’s operations for more than twelve months from issuance date of these consolidated financial statements.

The Company will seek to raise additional funds through future issuances of either debt and/or equity securities and possibly additional grants from the Israeli Innovation Authority and other government institutions in order to fund further growth and expansion of the Company. The Company’s ability to raise additional capital in the equity and debt markets is dependent on a number of factors, including, but not limited to, the market demand for the Company’s stock, which itself is subject to a number of development and business risks and uncertainties, as well as the uncertainty that the Company would be able to raise such additional capital at a price or on terms that are favorable to the Company.

MICROBOT MEDICAL INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

U.S. dollars in thousands

(Except share and per share data)

NOTE 1 – GENERAL

B. Risk Factors:

Middle East Conflict

The ongoing risks of operating in Israel have been exacerbated as a result of the October 7, 2023 surprise attack by hostile forces from Gaza, which led to Israeli military operation at first in Gaza, then in Lebanon, Syria, Yemen and Iran. These include security and economic risks, risks relating to the Company’s ability to sell or buy internationally, risk of economic instability, risk of exchange rate fluctuation negatively affecting operating costs, and the risk of employees leaving to perform military service. These military operations and related activities are on-going as of the filing date of these consolidated financial statements.

Subsequent to the reporting period, on February 28, 2026, a military operation referred to as “Epic-Fury” commenced with a large-scale attack on Iran carried out in coordination with the United States. In response, Iran launched a counterattack that included the firing of ballistic missiles and unmanned aerial vehicles toward military and civilian targets in Israel. Additionally, Hezbollah, a terrorist organization in Lebanon, joined the attacks against Israel and Israel has started military operations in Lebanon.

As a result, a special state of emergency was declared in Israel, which included, among other things, the closure of Israel’s airspace, restrictions on public gatherings, temporary closures and/or reduced operating hours of businesses, and the mobilization of military reservists, which have resulted in reduced economic activity.

The Company has considered various ongoing risks relating to these and other military operation and related matters, including:

The Company closely monitors how these and other military operation and related activities could adversely affect its anticipated milestones and its Israel-based activities to support future commercial, clinical and regulatory milestones, including the Company’s ability to import materials that are required to construct the LIBERTY^® devices and to ship them outside of Israel. As of the filing date of these consolidated financial statements, the Company has determined that there have not been any materially adverse effects on its business or operations.